Chinese product liability: a better system?

Chinese dairy manufacturers killed six children and injured more than a quarter million others, by selling milk, formula and other dairy products that were intentionally contaminated with melamine.  Melamine is an industrial chemical that artificially inflates the protein content of milk products while causing kidney damage and other internal ailments. 

The Chinese government announced in December of 2008 that the families of the poisoned children would be compensated by a one-time payment of $550 per victim (about 3 months' wages) from the China Dairy Industry Association.  I guess they've put that embarrassment behind them.  I'm sure that some in the American Chamber of Commerce drool over the possibility of enjoying that kind of product liability "reform" in this country.